The Euro was boosted by fundamentals on Wednesday. It surged past the monthly PP, the weekly R1 and the 23.60% Fibonacci retracement following a comment by the ECB Chief Economist Peter Praet about inflation approaching the bank’s set target rate. As a result, EUR/USD was able to reach the psychological 1.18 mark by this morning.
Some upside potential is still apparent in the market. Two possible target points are the weekly R2 and the 200-period (4H) SMA at 1.1850 and 1.1900, respectively. A test of the latter would provide another confirmation of a short-term ascending channel.
On the other hand, the Euro might ease its upward pressure for a few hours. However, the 55– and 100-hour SMAs should provide support, thus preserving the general bullish tendency this week.
